Raoul Pal, CEO of Global Macro Investors, discussed the current economy this week and asked his 394,000 followers if people used the wrong denominator when it came to certain economic factors. To be sure, no matter what people use to measure salaries today, wages have not increased. Pal wholeheartedly believes that Bitcoin is the only “life raft” he knows, with “the option to change this situation” [issue] Over time. “
The macro strategist asked: “Is our denominator wrong?”
Raoul Pal It is the bull market of Bitcoin. He has said many times that decentralized encrypted assets are extremely “hard money”. This week on Twitter, Pal Discussed People use some denominators to measure things in economics. He asked his social media followers if they thought our denominator was wrong.
“Many of us believe that the Fed’s banknote printing is creating an asset bubble. But when we replace the denominator with the Fed’s balance sheet, the price of the stock appears to be reasonable. When we look at SPX vs M2, people will see Another measure is that stocks are expensive, but not so… (This is just making money). Gold is not doing well, but it’s okay ( [like] Stocks minus earnings growth),” Pal said.
Regarding the relationship between gold and M2, the entrepreneur said that the denominator has gained a firm foothold. M2 is a term widely used in the calculation of easily convertible (liquid) money supply (including demand deposits and cash).
Pal said that SPX is 60% higher than its 100-year average compared to gold. He believes that “gold is the best long-term denominator for assets.” Pal went on to say that perhaps the devaluation of the denominator is the real problem at hand.
“We think this is [Federal Reserve] Cause a bubble, but considering [the] The value of the denominator? When a currency depreciates, it’s like Venz stock rises. Pal said. He added: “But when you look at wages, the situation is even worse, because real wages have hardly changed in the past 50 years. Due to population expansion, globalization and technological development, all assets The performance was poor. “
In the United States, the performance of all wages exceeds that of cars, trucks, and oil, but when the common denominator is gold, its performance is inferior.
“The other way is [to] Watch for hours [of] The work you need to do to buy an ounce of gold… Salary leaves you with no investment opportunities,” global macro investor executives emphasized. Pal said buying stocks is also a joke, because the median person buys close to zero. He stressed In buying real estate, people have lost 90% of their purchasing power.
This explains the increase in debt-households increase in order to maintain purchasing power… This is a theme that BTC market participants raised long ago. The performance of BTC has greatly exceeded the balance sheets of M2 and the Federal Reserve. You can interpret BTC as a bubble. You might be suggesting that with Metcalfe’s Law coming into effect, many people use it as a life raft and have not yet fully discovered it.
Bitcoin offers an opportunity to change this dynamic
Regardless of what Pal said, Bitcoin (BTC) has greatly offset the “wage/purchasing power/denominator problem.” He said that he thinks this is the only opportunity people have today to expand their economic horizons.
Parr asserted: “This is actually the only opportunity for the median person to change this dynamic.” “Especially young people, they are in fierce competition with baby boomers, their own generation, and technology and workers around the world. In his work, he is also struggling to survive.”
Global macro investor executives believe that wage issues have forced people to become more frustrated and angry about the system. He pointed out that people feel poorer, they are poorer, they have more debt, and they need to get more debt, which is an “endless cycle”, Pal emphasized.
As always, Pal believes that Bitcoin can help because ordinary people are not included, and the accessibility of traditional financial systems is becoming less and less. “This [average person] He cannot have enough investment to make up the difference,” he said.
This is a poverty trap for the middle class. Bitcoin is the only living raft I know of and can change this situation over time. It will over speculate, it will break, but it will rise again. I don’t see many options, because most of them cannot be successful entrepreneurs or market guides. They need investment. Certain things have high expected future returns. Or they can reduce the cost base through safety nets.
Goldman Sachs (Pal) is extremely optimistic about the future of Bitcoin, and for a long time, the former Goldman Sachs executive stated that he has been “responsibly long” with Bitcoin. The macro strategist at the time said in detail that he was also short the dollar.
“My belief in Bitcoin is increasing every day. I have grown irresponsibly,” he pointed out. After these statements, Pal stated that he decided to allocate 10% of the company’s balance sheet to holding Bitcoin and sell all of his gold reserves to obtain a portfolio of BTC and ETH.
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Asset bubbles, Bitcoin, Bitcoin (BTC), commodities, cryptocurrencies, Euro, Fed balance sheet, Federal Reserve, global macro investors, gold, life raft, macro strategist, poverty trap, precious metals, Raul Pal , Dollar, dollar, salary, salary
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